JPMorgan’s First Majority-Owned Brokerage Names New Head
JPMorgan has chosen a head for its new majority foreign-owned securities firm in China.
The U.S. bank has named Li Yi, who goes by the name David in English, as chairman of JPMorgan Securities (China) Co. Ltd., according to a statement (link in Chinese) released by the China Securities Regulatory Commission’s (CSRC) Shanghai office earlier this month. Currently, Li serves as the head of JPMorgan China.
JPMorgan Securities (China) is controlled by JPMorgan International Finance Ltd., which owns 51% of the former company’s shares, according to a CSRC filing (link in Chinese). JPMorgan International Finance is a subsidiary of JPMorgan Chase & Co.
Li joined the bank in 2014 as its new China head after the former chief executive of its China investment banking business, Fang Fang, left the bank as the U.S. government began an investigation into its hiring practices in Asia.
Before JPMorgan, Li was the chairman and country head for China at UBS Group AG. During his tenure, UBS Securities Co. Ltd., in which UBS held a stake, became the first fully-licensed foreign-invested securities firm in China.
Liu Hong, chairman of Shanghai-listed Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., will be a vice chairman of JPMorgan Securities (China). Shanghai Waigaoqiao is the second-largest shareholder of JPMorgan Securities (China) with a 20% stake.
For other appointments of directors of JPMorgan Securities (China)’s board, JPMorgan has also named Zhou Xiaoxiong, chairman of Shenzhen Mailande Equity Investment Management Co. Ltd., the company’s third largest shareholder; Lang Hongping, the legal representative of Beijing Langxin Investment Co. Ltd., one of the fourth largest shareholders; as well as Park Pu and Stephen Francis Davison, both senior officers from JPMorgan.
In April 2018, the CSRC loosened the cap on foreign ownership in joint-venture securities companies to 51%. In March this year, it gave the go-ahead for Japanese investment bank Nomura Holdings Inc. and JPMorgan to set up foreign-controlled securities joint ventures in China. The limit on foreign ownership will be scrapped in 2020, Premier Li Keqiang said in July.
The CSRC’s Shanghai office has approved the qualifications of seven Chinese and Japanese executives for Nomura Orient International Securities, Nomura’s newly established joint venture. The firm is expected to open by the end of this year.
Contact reporter Liu Jiefei (firstname.lastname@example.org)
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